What’s going on with Sotheby’s? Q2 Profit Falls 15 Percent

The stocks of the giant auction house Sotheby’s is significantly lower than last week and here is why: Late last week the company reported that profit for the second quarter of the year fell 15 percent compared to the same time last year, even though the overall sales rose, blaming the dissonance on expenses.

The company is planning to do some modest layoffs but this is not the only headache the company is dealing with now: According to a report by Bloomberg, fighting with billionaire activist hedge-fund investor Daniel Loeb cost Sotheby’s (BID) $24.3 million in the first half of this year. To put you in perspective, this amount is larger than the $22 million expense reduction the company announced earlier this year and at the end Sotheby’s had to appoint Loeb to its board.

Whether the presence of this eager activist investor can help the company to make a turnaround without turning art buyers away is something to be seen.